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Salary, bonuses and benefits

Verified 01 May 2023 - Legal and Administrative Information Directorate (Prime Minister)

The amount of the wage is freely determined during a negotiation between the employer and the employee. However, certain legal and contractual provisions must be respected. The salary consists of all the sums paid in cash and benefits in kind received by the employee.

The wages are set freely by the parties. Modification is prohibited without the employee's consent.

Attachment

The employer and the employee shall jointly determine the amount of the salary in accordance with the following rules:

  • Salary amount cannot be less than Smic: titleContentgross monthly, or €1,747.20 since 1er may 2023
  • The amount of pay must be the same between women and men for equivalent work (principle equal pay for equal work)

It is forbidden to fix the salary by means of electronic auctions.

Please note

in practice, wage negotiations are often expressed in gross wages, i.e. wages before deduction of social contributions. The net salary is the salary received by the employee after deduction of these sums.

Modification

In the course of the contract, the salary cannot be changed without the employee's consent.

The employee's refusal may not constitute a fault.

However, he may be dismissed if the proposed salary change is motivated by a real and serious cause (e.g. economic hardship or disciplinary action)

Any clause of automatic revision of salary by indexation to the evolution of the Smic: titleContent is prohibited.

Warning  

a deduction from wages can be made in the absence of work provided by the employee (in the case of a strike, for example).

Social contributions on earnings

For the purposes of calculating social contributions, all the following amounts paid to the employee shall form part of the remuneration:

  • Wages or earnings
  • Vacation pay
  • Allowances, bonuses, bonuses and any other monetary benefits
  • Benefits in kind, commissions and tips

Definition

Bonuses and bonuses are complementary to salary.

Their payment is compulsory if it is provided for by one of the following arrangements

  • Employment contract
  • Collective Agreement
  • Use
  • Unilateral undertaking by the employer

These amounts are part of the salary. Examples include:

  • Annual bonuses and bonuses (end-of-year bonuses of 13e months, holidays, balance sheet, participation, etc.)
  • Cost of living allowances (cost of living allowances, productivity allowances, etc.)
  • Person-related bonuses (attendance, punctuality, seniority, etc.)
  • Premiums relating to certain working conditions (hardship, dangerous and unhealthy work, periodic penalty payments, etc.)

Bonuses and bonuses are not an element of salary if they are not mandatory. This is the case, for example, of a performance bonus, a variable bonus decided by the employer or the exceptional purchasing power premium.

Social contributions on earnings

For the purposes of calculating social contributions, all the following amounts paid to the employee shall form part of the remuneration:

  • Wages or earnings
  • Vacation pay
  • Allowances, bonuses, bonuses and any other monetary benefits
  • Benefits in kind, commissions and tips

Definition

Benefits in kind are an element of salary that is not paid in cash (i.e., cash, check or bank transfer).

This is most often the provision of food or the provision of a vehicle or an official accommodation.

Benefits are incorporated into salary to calculate the following amounts:

  • Monitor compliance with Smic: titleContent or the conventional minimum wage
  • Determine the compensation to be paid to the employee during paid leave
  • Determine notice and termination pay
  • Determine the amount of social contributions (social security contributions, CSG and CRDS)
  • Determine the amount of income to be reported for income tax purposes

Social contributions on earnings

For the purposes of calculating social contributions, all the following amounts paid to the employee shall form part of the remuneration:

  • Wages or earnings
  • Vacation pay
  • Allowances, bonuses, bonuses and any other monetary benefits
  • Benefits in kind, commissions and tips

FAQ